Overall sentiment was cautious as 25 companies will launch
initial public offerings next week, which analysts estimate
could lock up 5.5 trillion yuan ($886.20 billion) of liquidity.

The CSI300 index of the largest listed companies
in Shanghai and Shenzhen rose 0.5 percent, to 5,335.12, while
the Shanghai Composite Index gained 0.9 percent, to
5,166.35 points.

For the week, CSI300 was up 2 percent, and the SSEC rose 2.9
percent.

Property stocks were firmer, underpinned by
official data pointing to an improvement in real estate
investment and home sales in China, with the recovery most
obvious in major cities.

Several banks in the southern Chinese boom town of Shenzhen
increased mortgage rates after the city's property market turned
up in the wake of stimulus policies unveiled by Beijing in late
March, local newspaper reported on Friday.

But other data published this week, including fixed asset
investment, consumer and factory inflation, remained weak.

"China will continue to loosen monetary policies, because
there's no other way out," said Hong Hao, chief strategist at
Bank of Communications International.

"The uptrend of the market is not changed, despite rising
volatility," he said, predicting China will reduce banks'
reserve requirement ratios "in a matter of weeks".
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